Which of the Following Reasons Is the Most Responsible for Corporations

question 52

Multiple Choice

Which of the following reasons is the most responsible for corporations being the most important form of business organization in the United States?

• A)Corporations have limited life.
• B)Stockholders have unlimited liability.
• C)Corporations are subject to less government regulation than other forms of business organizations.
• D)Corporations have the ability to raise larger sums of capital than other forms of business organizations.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials and labor.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Car Washes

Businesses or services dedicated to cleaning vehicles, both internally and externally, often offering various levels of service.

Variable Costs

Charges that fluctuate in accordance with the amount of output.